Merry Christmas… in Likely the Last Good Year for Many to Come

I wish I could say it’s a good thing that central banks have kept this third and final bubble going this long. The truth is it’s about to end. QE is failing and promises for fiscal stimulus are likely to be too late.

This totally irrational “Trump rally” may go on for a few months into 2017, but by early-to mid-2017 we may see the start of the greatest crash of our lifetime.

So, let’s celebrate while things are still good; but, at the same time, start preparing for the inevitable crash and debt/financial asset deleveraging that is way overdue.

My only advice on Christmas gifts is: If you gave a loved one any gold jewelry, take out put options against gold to hedge! Gold stands to devalue 40% or so in the next year!

Thanks for being loyal subscribers in a time when this bubble we are warning about seems to have no end…

Just remember that bubbles always burst… and so will this one. It’s just a matter of time. And time is running short.

You don’t get to spring without going through winter – just ask Japan. And the worst of the economic winter is ahead. Stimulus efforts to prevent this will only make it worse.

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.